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Dec 31, 2023

Saul Centers Q4 2023 Earnings Report

Operating results announced for the quarter ended December 31, 2023, with increased revenue and net income compared to the same quarter in the previous year.

Key Takeaways

Saul Centers, Inc. reported an increase in total revenue to $66.7 million and net income to $17.5 million for the fourth quarter of 2023, compared to $62.3 million and $15.4 million, respectively, for the same period in 2022. The increase in net income was primarily driven by higher termination fees and base rent, partially offset by higher interest and administrative expenses. Funds From Operations (FFO) available to common stockholders and noncontrolling interests also increased to $26.9 million ($0.79 per share).

Total revenue increased to $66.7 million, up from $62.3 million in the same quarter of the previous year.

Net income rose to $17.5 million, compared to $15.4 million for the same quarter in the previous year.

Net income available to common stockholders was $10.4 million ($0.43 per share), compared to $9.1 million ($0.38 per share) for the same quarter in the previous year.

Funds From Operations (FFO) available to common stockholders and noncontrolling interests increased to $26.9 million ($0.79 per share) from $24.7 million ($0.74 per share) in the same quarter of the previous year.

Total Revenue
$66.7M
Previous year: $62.3M
+7.0%
EPS
$0.79
Previous year: $0.72
+9.7%
Commercial Portfolio Leased
94.2%
Residential Portfolio Leased
98%
Gross Profit
$37.8M
Previous year: $45.6M
-17.2%
Cash and Equivalents
$8.41M
Previous year: $13.3M
-36.7%
Free Cash Flow
$32.7M
Previous year: -$87.7M
-137.3%
Total Assets
$1.99B
Previous year: $1.83B
+8.8%

Saul Centers

Saul Centers

Saul Centers Revenue by Segment

Forward Guidance

The company provided forward-looking statements, cautioning that actual results may differ due to various risk factors, including economic conditions, tenant solvency, financing risks, governmental regulations, interest rate volatility, and potential impacts from epidemics or pandemics.

Challenges Ahead

  • General adverse economic and local real estate conditions
  • The inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business
  • Financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company
  • The Company’s ability to raise capital by selling its assets
  • Changes in governmental laws and regulations and management’s ability to estimate the impact of such changes

Revenue & Expenses

Visualization of income flow from segment revenue to net income